CLEVELAND (AP) — KeyCorp's fourth-quarter earnings edged up 1.5 percent as revenue growth helped offset costs from an efficiency initiative, the regional banking company said Thursday.
KeyCorp reported an increase in loans and average deposits over the same period of 2011. Loans grew 6.6 percent and average total deposits were up 7.3 percent in the last three months of 2012.
"We had a good finish to 2012," said Chairman and CEO Beth E. Mooney.
The Cleveland-based company earned $197 million, or 21 cents per share, in the three months that ended Dec. 31. That is up from $194 million, or 20 cents per share, in the final quarter of 2011.
The company recorded a $4 million gain from discontinued operations in the latest quarter, compared to a $7 million loss the previous year.
Total revenue climbed nearly 10 percent to $1.07 billion.
Analysts expect earnings per share of 21 cents on total revenue of $1.05 billion.
The company says it recorded a $16 million charge in the quarter for costs tied to its Fit for Growth efficiency initiative.
For the year, KeyCorp earned $836 million, or 89 cents per share, up 2.8 percent from 2011 earnings of $813 million, or 87 cents per share.
"Our full-year results reflect success in executing on our strategies to grow loans, add additional payment capabilities to our product line in the form of credit cards and improved mobile banking, and moving forward on our efficiency initiative," Mooney said.
Shares fell 18 cents, or 1.9 percent, to $9.12 in midday trading Thursday. They are still near the high end of their 52-week range of $6.80 to $9.50.